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Suppose there is an economy that produces only four goods in one year. Paper. $7,000 Books: $14,000 Toner: $2,500 Envelopes: $6,000 The production of books
Suppose there is an economy that produces only four goods in one year. Paper. $7,000 Books: $14,000 Toner: $2,500 Envelopes: $6,000 The production of books requires the following amount of intermediate goods: Paper: $2,500 Toner: $1,000 The production of envelopes requires the following amount of intermediate goods: Paper: $2,500 a) Find the total GDP for the economy. GDP = $0 b) Find the value of paper sold as a final good. Value of paper sold as a final good = $0 c) Find the value of toner sold as a final good. Value of toner sold as a final good = so d) Fill in the values in the following statement. This statement discusses how the deduction of the intermediate values for paper and toner are related to the value of the GDP you found in (part (a)) if we did not account for the double-counting of paper and toners, the value for the GDP would have been incorrectly recorded as: $ 0 . The value of paper as Intermediate input is $ 0 and the value of toner as $ 0 . The amount we double-counted was $ 0 . This is why the accurate value of the GDP should be $ 0 -$ 0
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